Kisumu: Kisumu residents gave mixed views during the hearing of the proposed sale of part of the government’s shares in the giant Telco Safaricom Public Limited Company (PLC). The session of the Joint sitting of the Parliamentary Committee on Finance and Planning and the Public Debt and Privatization Committee in Kisumu was led by Homa Bay Town Member of Parliament (MP) Peter Kaluma.
According to Kenya News Agency, during the deliberations, a section of the residents argued that the proceeds of the sale should be channeled directly to development issues close to their hearts, such as water and electricity provision and infrastructure. Conversely, another section opposed the sale, arguing that it was not prudent to sell Kenya’s most profitable company and leader in communication services in the region. Those in favor of the proposed sale demanded accountability for every shilling from the proceeds to empower citizens.
Speaking at a public participation forum held at the Mama Grace Onyango Social Hall, which was filled to capacity, residents expressed concerns over government transparency in utilizing the Sh240 billion expected to be raised from the sale of over 6.01 billion government shares in the Telco. Elizabeth Adhiambo, a resident of Kisumu West, voiced her misgivings about the government’s ability to manage proceeds from the proposed sale and sought assurances that funds would be directed toward priority sectors like energy and infrastructure, without diversion to the 2027 campaigns.
John Odhiambo from Nyakach urged the government to explore alternative financing mechanisms for development programs instead of selling the giant telephony. Collins Otieno from Kisumu East emphasized prioritizing the fight against wastage and corruption, which reportedly consumes a significant portion of public funds annually.
Public participation is mandated by Article 118 of the Constitution, which requires Parliament to facilitate public input and hearings before enacting various issues and laws, ensuring the inclusion of citizen views in legislation. The Kenya Constitution 2010 prioritizes Kenyans in decision-making processes.
Through Sessional Paper NO.3 of 2025, the State plans to divest 15 percent of its Safaricom shares by June 2026, reducing ownership to 20 percent. The proposed price is Sh34 per share, expected to raise approximately Sh149 billion (US$1.1 billion) for budget support, involving a secondary public offering or direct block sales aimed at funding national development, although facing political opposition.
The process is part of a broader privatization strategy that includes other state enterprises and offers the government an opportunity to generate funds without imposing new taxes on Kenyans. National Treasury and Economic Planning PS Dr. Chris Kiptoo previously noted in Naivasha that the divestiture is part of government efforts to raise funds without incurring new debt.
Daniel Manduku, Member of Parliament (MP) for the Nyaribari Masaba Constituency in Kisii County, assured residents that as their representatives, they will ensure the money from the sale is put to good use. Legislators guaranteed that participants’ views would be documented and considered, reiterating that public participation remains a constitutional requirement in policy-making.
Currently, 25 percent of Safaricom is publicly traded on the Nairobi Securities Exchange (NSE), with the remainder held by the Kenyan government, Vodacom, and Vodafone. President Dr. William Ruto has defended the plan as a means to unlock value and increase public ownership, yet some Kenyans warn against risks to the company’s stability, citing the collapse of other privatized entities.
According to its website, Safaricom reported a 7.2 percent profit increase to Sh.45.7 billion for the year ending March 2025, with an interim dividend of Sh0.85 per share approved in February 2026 and payable on March 31, 2026. Safaricom PLC, founded in 1997, is Kenya’s leading telecommunications provider, majority-owned by the Kenyan government (60 percent shareholding) and Vodacom group. It offers mobile voice, data, and financial services, notably the mobile money platform M-PESA, Africa’s largest fintech and the world’s first mobile money transfer service, with over 30 million users in Kenya. With over 42 million customers, the Telco boasts extensive 2G, 3G, 4G, and 5G coverage in the country and beyond.
